{"id":12978,"date":"2023-08-22T13:00:00","date_gmt":"2023-08-22T13:00:00","guid":{"rendered":"https:\/\/fortispay.com\/what-is-a-retained-amount-for-isvs\/"},"modified":"2023-08-22T13:00:00","modified_gmt":"2023-08-22T13:00:00","slug":"what-is-a-retained-amount-for-isvs","status":"publish","type":"post","link":"https:\/\/fortispay.com\/what-is-a-retained-amount-for-isvs\/","title":{"rendered":"What is a Retained Amount for ISVs?"},"content":{"rendered":"\n

Service fees for software have come a long way. Software developers continue to evolve and change the way they charge their merchants. For instance, some developers may find it helpful to avoid charging a monthly or yearly one-time fee for their software services, keeping a portion of each transaction instead. Moreover, some would prefer to hold a convenience fee or withhold a donation, but don\u2019t currently have a way to separate the charges from merchants\u2019 transactions. Fortunately, this is where a Retained Amount<\/a> feature can help.\u00a0<\/p>\n\n\n\n

How Retained Amounts Work\u00a0<\/h2>\n\n\n\n

Sometimes called split funding, a Retained Amount withholds a percentage of a merchant\u2019s deposit. The funds are then distributed into two or more bank accounts, which enables ISVs to better segment costs and deduct fees.  <\/p>\n\n\n\n

For example, let\u2019s say a merchant receives $100 from a transaction. The ISV\u2019s processing fee is 2%, and they want to reserve an additional 2% from each transaction to cover the cost of the software. That would mean $2 would be used for the processing fee and $2 would be sent to the ISV\u2019s account automatically. In many cases, the ISV has a specific reserved account for these fees and is paid a residual.\u00a0\u00a0<\/p>\n\n\n\n

Organizations often leverage this option to refine their payment processing workflow and reduce manual transactions.\u00a0<\/p>\n\n\n\n

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